cbl8-o1 cfct monitoring 3 september 24, 2009. cbl8-o2 agreements agreementpoint persondeadline 1....
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CBL8-O1
CFCT Monitoring 3 September 24, 2009
CBL8-O2
AgreementsAgreement Point Person Deadline
1. Weekly Submission of PAR Reporta. Branch levelb. Consolidated
MCH/JLL Every ___
2. Monthly FS submissiona. Branch levelb. Consolidated
MCH/JLL Every third Thursday of the following month
3. Simulation of LLP and LLR (following BSP Circular 409)
MCH Every third Thursday of the following month
4. Loan Prioritization-emailed already
Head/Supervisors July 31
5. DQ Task Force (emailed already) BFC August 6
6. Four Saturdays of Past Due Collection (LABAN) August 8, 15, 22, 29
JCT/RMM August 27 (for LABAN reports of August 8, 15, and 22)September 3 (for August 29)
CBL8-O3
AgreementsAgreement Point Person Deadline
7. 5th Saturday for client interview on DQ reasons and solutions (September 5)
JCT/RMM September 10
8. Submission ofa. Revised CBL and CBS formsb. CFC-Tekton forms currently being used to process
existing loans c. Subsidiary ledgers in AO folder (green, orange, red)
CBL8-O4
PD Agreements
Agreement Point Person Deadline
1. Client Exit interview – 10 dropouts per project assistant (PA) October 9
2. Competition Analysis Matrix – 1 competitor MFI per branch manager
October 9
3. PRA on Seasonality pattern of income, expenses, savings and credit – 1 FGD per PA
October 23
4. PRA on Time Series of Crises – 1 FGD per account officer October 23
5. PRA on Life Cycle Events 1 FGD per PA October 23
6. Microinsurance research tool – 30 respondents per PA November 6
7. Remittance research – 5 respondents per account officer plus a table showing the number of remittance receiver clients in each center (see table on the next slide)
November 20
8. Impact Assessment – 30 respondents per PA December 4
CBL8-O5
Number of Remittance Receivers
Center Name Client Name
Number of Remittance Receivers in
the HH
Occupation of OFW
Country
CBL8-O6
Competition Analysis Matrix CARD TSPI KMBI RB Paracale BADEVCO
Product (Design)Sikap Loan/ Sagip Loan/ HaPinoy/ Emergency Loan/ Regular Loan
General Loan and Special Loan Regular Loan, Housing Loan and Emergency Loan
Baranggay Loan and Microfinance Groupings
Eligibility Reqmts. Female, with existing business Female, Attend 2-hour per day seminar for 4 days; and after 1 week loan release
3 days seminar 2 hours each day
Barangay Loans: for barangay officials only; Microfinance for microentrepreneurs
Years in Business no minimum as long as the business is existing None as long as there is a
business
Residency 3 years As long as one is a resident of the area
Age 18 - 60 years old 18 to 60 years old 18 to 65 years old
ID documents (SSS, Voter’s ID etc)
Nothing needed as long as with good reputation through CI of Technical Officer and Branch Manager before membership; ID picture
Baranggay Clearance, Sedula and and ID Picture; TSPI also issues ID to the clients
Barangay clearance, birth certificate, marriage contract, sedula, ID picture
ID picture
Business location
Cash flow requirement (Daily, weekly, monthly or seasonal)
Conducted during the CI - weekly
Determined by account officer during CI
No specific requirment; Determining loan amount is based on CI
Through CI only and asset assessment, with semblance of project based lending
Required to open Savings account
Automatic - 40 pesos CBU per week, withdrawable after the first loan cycle but with 20% maintaining balance based on the loan amount released
Compulsory savings - 30 pesos per week; 4 pesos per week damayan
40 pesos CBU per weekCBU is pre-deducted equivalent to 2.5% of the loan amount
Ineligible Clients Male
Loan Purpose Additional working capitalGeneral Loan - for additional working capital; Special Loan for emergency and for multipurpose
Additional working capital and start up
Additional working capital and start up as long as the client is able to pass the CI
Min Loan Amount 2000 4,000 to 5,000 in the first loan cycle 4,000 2,500
Max Loan Amount5000 on the first loan; 5000 increment every cycle; up to 50,000
2,000 maximum increment every loan cycle
Increment is 50% of the previous loan
Loan Duration23 weeks, but on the 20th week accelerated payment is acceptable
23 weeks, but on the 12th week accelerated payment is acceptable
24 weeks 1 year and six months
CBL8-O7
Competition Analysis Matrix CARD TSPI KMBI RB Paracale BADEVCO
Loan Duration23 weeks, but on the 20th week accelerated payment is acceptable
23 weeks, but on the 12th week accelerated payment is acceptable
24 weeks 1 year and six months
Guarantees required (e.g. Group liability, co-maker, deed of assignment etc.) Family guarantor Group liability and co-maker Group guarantee and co-maker Group guarantee and co-maker
Interest Rate 30% per annum 36% per annum 24% to 36% per annum26% per annum but higher effective interest rate because of pre-deduction
Service Charge None None None 7% per loan cycle, pre-deducted
Compulsory Savings 40 per week 30 per week 40 per weekNone because it is pre-deducted - known as pilit impok
Other charges (Identify) No memebrship fee, no passbook 25 pesos for ID and passbook 60 pesos processing fee
10 notarial fee; CBU, insurance and PhilHealth are pre-deducted
Promotion
Marketing/Information Dissemination
Word of mouth, relatives, get in touch with a key person and then the key person spreads the word and invites other members to join; CARD also conducts orientation
Word of mouth Word of mouth Word of mouth
Advertising None None None None
PlaceMain office is in Daet and meet in a the house of a designated client
Main office is in Daet and meet in a the house of a designated client
Main office is in Daet and meet in center house
Head office of the bank is in Paracale
Positioning
Like after 3 years of membership member could avail scholarship for children - college education, insurance - philhealth; akap CARD - hospitalization benefit - 1800 per year;
Likes insurance better than CARD; as long as payment is complete attendance is not required; with additional knowledge on business during business
Nothing to worry about because all you have to be mindful of is the loan repayment; Loan processing is fast, all the client has to do is to bring the document requirements and the loan will be released
Slogan/vision Corporate Image Product Image
Physical Evidence With satellite office in Talisay and CARD Rural Bank in Daet; Office located in Daet
Center house is a requirement; 30 minutes for collection and 30 minutes for the meeting
With office, account officers often wear jacket
People Technical officers are in uniform
Process
Others
2 resignations no longer allowed to go back; one missed attendance 4 weeks not allowed to withdraw savings and no increase in loan amount; 2 absences 1,000 decrease in loan amount; subsequent loans do not need to have CI
likes CARD betterIntegrate SSS in the product and provide scholarship; Loan release is in the form of check and they encash this in UCPB
Every loan cycle, CI is conducted
Dislikes Stringent attendance policy and decrease in loan amount
Utang na loob factor sa Account Officer - need to feed the AO
Clients remit the payment and clients shoulder the expenses like transportation; Center penalty if incomplete paymet 2,800 per center
If one group member is delinquent the whole group could not re-loan; Savings of members could not be withdrawn of the group if any of the group member is delinquent
CBL8-O8
Competition Analysis Matrix CARD TSPI KMBI RB Paracale BADEVCOSlogan/vision Corporate Image Product Image
Physical Evidence With satellite office in Talisay and CARD Rural Bank in Daet; Office located in Daet
Center house is a requirement; 30 minutes for collection and 30 minutes for the meeting
With office, account officers often wear jacket
People Technical officers are in uniform
Process
Others
2 resignations no longer allowed to go back; one missed attendance 4 weeks not allowed to withdraw savings and no increase in loan amount; 2 absences 1,000 decrease in loan amount; subsequent loans do not need to have CI
likes CARD betterIntegrate SSS in the product and provide scholarship; Loan release is in the form of check and they encash this in UCPB
Every loan cycle, CI is conducted
Dislikes Stringent attendance policy and decrease in loan amount
Utang na loob factor sa Account Officer - need to feed the AO
Clients remit the payment and clients shoulder the expenses like transportation; Center penalty if incomplete paymet 2,800 per center
If one group member is delinquent the whole group could not re-loan; Savings of members could not be withdrawn of the group if any of the group member is delinquent
CBL8-O9
CBL and CBS Monitoring
Character and Capacity Based Lending (CBL)
1. Loan Application Form
2. Client Rating System
3. Character and Background Investigation (CI/BI)
4. Cash Flow
Color-coded Bookkeeping System (CBS)
1. Subsidiary Ledger
2. PAR Report
3. Outreach Report
4. Repayment Behavior Tracking System
CBL8-O10
CBL and CBS Monitoring
• Thirteen (14) project assistants (PAs) submitted the Character and Capacity Based Lending (CBL) and Color-Coded Bookkeeping System (CBS) assignments
• Each PA submitted three (3) folders containing (folder 1) CBL forms including Tekton LAFs, SEDPI LAFs, CIBIs, cash flow forms, and client rating forms; (folder 2) outreach report, PAR report, and subsidiary ledgers; and, (folder 3) repayment behaviour tracking sheets
• CFC Tekton has adopted their Tagalog version of SEDPI LAF
CBL8-O11
Character and Capacity Based Lending
Account Officers
Accomplished Assignment Remarks
1. Enguerra, Ruben HO
Loan Application Form New 5/5 Repeat 5/5
- Some items were left unanswered or unmarked instead of putting N/A if not applicable to the client, i.e. utility bills, school tuition fees, and receipts shown
- Occupation of household member was vaguely described as “self-employed” or “businessman” instead of indicating specific livelihood activity
- Some suppliers do not have contact detailsCash Flow 10/10 - Conversion used was not encircled
- Some items in the debt capacity analysis were left blank- Inaccurate computations
Credit and Background Investigation (CI/BI) 10/10
- Name of supplier interviewed was not indicated- Some answers in character assessment inadequately
demonstrate client’s reputation in the community, entrepreneurship, stability and responsibility, i.e. “mabait,” and “ok naman siya.”
Client Rating 0/10
- Inaccurate computations
CBL8-O12
Character and Capacity Based Lending
Loan Application Form• Some items left unanswered were the
middle initial, age, SLS/center name, loan amount applied for, loan term, last loan amount, business growth, market conditions, receipts shown, rent, utility bills, suppliers, school tuition fees, amount of savings, organizations, spouse’s signature.
CBL8-O13
Character and Capacity Based Lending
Loan Application Form• Some items were left blank instead of
answering “n/a” if the item is not applicable or irrelevant to the applicant/client.
• The proper way of erasing data was not observed.
• Occupation of household member was vaguely described as “self-employed” or “businessman” instead of indicating specific livelihood activity
CBL8-O14
Character and Capacity Based Lending
Loan Application Form• Some descriptions of market conditions do
no show supply, demand and competition.• Some descriptions of business growth do not
show comparison of past and present status.• Did not indicate contact details of suppliers
but answered “cash basis” instead.• There was no probing on some answers, i.e.,
reason why the receipt was not shown
CBL8-O15
Character and Capacity-Based Lending
Credit and Background Investigation• Was not able to interview suppliers/creditors• Some answers in character assessment
inadequately demonstrate client’s reputation in the community, repayment behavior, entrepreneurship, stability and responsibility
• Some items were left blank instead of answering “n/a” if the item is not applicable or irrelevant to the applicant/client
CBL8-O16
Character and Capacity-Based Lending
Cashflow• Conversion used was not encircled• Some income sources of household
members were not included• Some items under the debt capacity
analysis were left blank• Proper way of erasing data was not
observed
CBL8-O17
Character and Capacity Based Lending
Client Rating System• Left some items blank instead of writing
N/A if not applicable to client• Inaccurate computations
CBL8-O18
Color-Coded Bookkeeping
AO Accomplished Assignment
Remarks
1. Palad, Angelo N Subsidiary Ledger
31/30- Note: All SLs were classified as green (current
loans)- Initial transaction has no PA signature and the
amount paid was left blank
PAR Report 1/1 - No corrections
Outreach Report 1/1 - No corrections
Repayment Behaviour Tracking Sheet 31/30
- Note: All 30 client samples have ongoing first loan cycles
CBL8-O19
Color-Coded Bookkeeping
Subsidiary Ledger• Initial transaction has no PA signature and
the amount paid was left blank• No balance forwarded• Some items were left blank instead of
entering “0” or “-” to indicate none
CBL8-O20
Color-Coded Bookkeeping
PAR Report• Most forms were correctly done• Proper way of erasing data was not
observed
Outreach Report• New and dropout columns were left blank
CBL8-O21
Color-Coded Bookkeeping
Repayment Behaviour Tracking System• Most forms were done correctly• Outstanding balance of savings was left
blank
CBL8-O22
SEDPI
Raquel Reyes
Faline Saño
CBL8-O23
Maraming salamat po!